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Banking/Transcript
Transcript Text reads: The Mysteries of Life with Tim and Moby Moby and Tim are in a bank lobby. Moby is signing a withdrawal slip. TIM: Are you going to tell me why we're here? I've got a lot of stuff to do today. Moby hands Tim a letter. Tim reads from the typed letter. TIM: Dear Tim and Moby, regards and felicitations from the Federal Republic of Zyrundi! As discussed in our prior email, please make out a personal check for five hundred dollars to myself, Philippe Pilfponce-Henry III. Tim frowns and continues reading. TIM: Once I receive that, plus your checking account number, I will forward you the code to a numbered Swiss account containing thirty-two million dollars. Please hurry, as our mutual benefactor is in great danger, both political and personal. Yours, Philippe Pilfponce-Henry III. Tim looks toward Moby. TIM: I don't know what I was thinking, opening a joint checking account with you. He looks back at the letter and reads on. TIM: P.S. My son loves your movies. Can you tell him how banks work? Tim points his finger as if he’s addressing the writer of the letter. TIM: Well, sir. You are a scam artist, so we won't be sending you any money. Tim rips Moby's withdrawal slip in two. TIM: But sure, as long as we're here, we'd love to do a movie on banking. You probably know the basic idea. Banks are storage places for people's money. Putting your money in a bank is much safer than hiding it in your home, where it can get stolen, lost, or destroyed. Images show a thief stealing money from under someone’s mattress, a dog burying money in a yard, and a house on fire. MOBY: Beep. TIM: Well, sure. A bank can get robbed, go out of business, or be destroyed like any other building, although banks tend to be pretty sturdy. An image shows the emblem of the Federal Deposit Insurance Corporation. TIM: Still, the money you keep there is insured by the federal government. If anything happens to it, you'll get up to two hundred and fifty thousand dollars of it back. Another benefit to keeping your money in a bank is that some bank accounts pay interest, a percentage of your cash the bank gives you just for keeping your money there. Moby's eyes turn into dollar signs. MOBY: Beep. TIM: Well, the amount of interest depends on the kind of account you open. The two main types are checking and savings. A checking account is kind of like a big wallet. You use it to pay for everyday expenses, like rent, food, clothes, and entertainment. An image shows an open wallet. Smaller images illustrate the expenses Tim describes. TIM: Nowadays, checking accounts come with a debit card, too. These things let you get cash from ATMs and pay for stuff at stores with money that comes straight out of your account. An image shows a debit card with the name Mr. Timothy. TIM: You can also pay for things with checks, slips of paper that have your account information on them. But you have to be careful. If you write a check for more money than you have, you'll overdraw the account and have to pay a penalty. An image shows a blank check, personalized for Mr.Timothy. MOBY: Beep. He holds up a five hundred dollar check made out to Philippe Pilfponce-Henry III. TIM: Stop that. Tim takes the check from Moby, crumples it, and eats it. He clears his throat and continues. TIM: So, it's important to keep track of your balance, the amount of money you have, before you pay. MOBY: Beep. TIM: A savings account is for, well, saving. People usually use them to save up for big expenses like college, homes, and retirement. An image shows a piggy bank. Smaller images illustrate the expenses Tim describes. TIM: It's often harder to take out, or withdraw, money from a savings account. Banks often charge fees if you make a lot of withdrawals or if you let your balance get too low. But unlike many checking accounts, banks pay interest on savings accounts. An image shows a bank customer making a withdrawal. He has a photo identification card, bank book, and withdrawal slip. MOBY: Beep. TIM: Well, you can think of interest as the cost of borrowing money. When you deposit money in your bank account, you're actually lending the bank that money. An animation shows a bank customer handing a bag of money to a bank teller. The bank teller's eyes turn into dollar signs. TIM: And the bank doesn't just let your money sit there. Instead, it lends most of it out to other people or invests it. An animation shows the same bank teller handing the bag of money to a woman. MOBY: Beep. TIM: It's not dishonest. You can always get your money back when you want it. And besides, without bank loans, most people wouldn't be able to buy houses, cars, and other major stuff. An animation shows the woman from the bank tossing the bag of money to a car dealer as she drives a new car off of the lot. TIM: The money you borrow on a credit card is usually provided by a bank, too. Plus, bank loans are vital to the economy. For instance, most new companies begin with a loan. An image shows an entrepreneur meeting with a loan officer. TIM: And existing businesses are constantly taking out short-term loans to cover day-to-day expenses. An image shows a banker shaking hands with a florist. MOBY: Beep. TIM: You want to take out a business loan? Moby nods. TIM: A bank won't just give money to anyone who asks, you know. They're going to want to see a business plan. Moby produces a folder marked "Business Plan." Tim examines it. It consists of a drawing of a bunch of crawling and flying bugs, including some in a bowl of food. TIM: A free-range organic bug farm? You know, if I were a bank, I'd sooner give my money to Philippe Pilfponce-Henry. Moby holds up three fingers. MOBY: Beep. TIM: Yes, the third. Category:BrainPOP Transcripts